After months of discussion, argument and lobbying for and against the housing stimulus package-it was signed into law on July 31, 2008. The stimulus package has been called one of the most important federal housing policies in a generation addressing: the foreclosure and credit crisis, providing new oversight as well as structural reforms for the GSEs, improving LIHTC regulations through careful revisions, increasing bonding capacity, and creating a national housing trust fund.

For first time home buyers, the enactment of this particular piece of legislation means a tax credit in the amount of $7,500 as a direct result of the purchase of a home. Eligible home purchases must be made between April 9, 2008 and July 1, 2009. A first time home buyer is defined (for the purposes of this tax credit) as being anyone who has not owned a home in the past 3 years. The tax credit is central to the package and has been receiving a lot of attention from industry experts as well as buyers themselves; many of which see the tax credit as the bonus that tips the scales towards buying a home now.

Opponents of the bill note that the national debt is being elevated to aid Fannie Mae and Freddie Mac, two private companies (and mortgage giants) with publicly traded stock. The package has been criticized due to the stated guarantee that monetary help will come from the government. They claim this arrangement offers the opportunity for private profits dependent upon risk and loss resting on society as a whole. The elevation of the national debt by the estimated $25 billion to be spread out in the next two years of the federal budget is also another popular negative among bill opponents.

Prominent supporters of the bill include the NAHB (National Association of Home Builders). The National Assoc. of Home Builders fully supported the package and sees it as the stimulus the housing industry needs to pick itself up after the recent explosion resulting in the current recovery period. They see it as the perfect confidence builder that will give home buyers the push they need to purchase now.

Considering the astronomical numbers of foreclosures currently on the market, the bill seems to be the most appropriate reaction. For instance, as of March 2008, there were over 210,000 residential properties in foreclosure in California alone. The recent bill will leave California the recipient of $365MM in direct funding and leverage over $780MM in additional grants. One of the results of the monetary benefits will be the generation of over 6,500 new jobs and the return of nearly $10 billion in property taxes.

Amongst new home builders, support is nearly unanimous. Owner of Montalbano Homes, Anthony Montalbano, claims, “This stimulus package is just what the economy needs. It will alleviate the obvious issues in the housing industry and that will begin the ripple effect that is needed to aid the economy as a whole. We needed to do something to alleviate the problems that came with the housing explosion that occurred in the last several years.”

Experts, industry leaders, politicians…everyone has their own view of the stimulus package, but one thing can’t be argued. That one item that is indisputable is that fact that home buyers have a unique opportunity through June of 2009 to take advantage of the offered tax credit. It’s not difficult, it’s not out of reach and while it’s for a limited time, it isn’t an obscenely short period of time. Buyers in the know will recognize the opportunity and take advantage of it before it’s too late.